Michigan’s Unemployment Insurance Rate Will Soon Rise: What Employers Should Know
December 23, 2025
Article written by the SBAM Policy Team for SBAM’s Lansing Watchdog newsletter
Beginning January 1st, 2026, Michigan’s Unemployment Insurance maximum weekly benefit will increase from $446 per week to $530 per week. This means that for new claims filed in 2026, claimants may qualify for a substantial increase in their weekly benefit rate, depending on what they qualify for given their wage history.
The amount a claimant receives for each dependent will also increase at the start of the year, rising from $12.66 per dependent to $19.33 per dependent, up to a total of 5 dependents. The maximum weeks a worker can qualify for benefits remains unchanged at 26.
With a 46% increase in the maximum benefit rate just within this year alone, it is widely expected that employer assessments will increase in response, because Michigan’s Unemployment Insurance Trust Fund is 100% funded through employer assessments. The magnitude of these increases is not yet clear.
Background
Future increases in benefits are due to the passage of Senate Bill 40, which was signed into law in late 2024 and triggered a series of benefit expansions for Michigan’s unemployment insurance program. This legislation increased the maximum amount of benefit weeks from 20 to 26, and approved scheduled increases for Michigan’s unemployment insurance rate, as shown below:
| Date (Filed on or after) | Maximum Weekly Benefit Amount | Dependent Amount |
| Old rate, Pre-SB 40 | $362.00 | $6.00 |
| April, 2025 | $446.00 | $12.66 |
| January 1, 2026 | $530.00 | $19.33 |
| January 1, 2027 | $614.00 | $26.00 |
| January 1, 2028, and every January 1 beyond | Previous year’s maximum increased by rate of increase in the Consumer Price Index | |
The bill also included changes to the work search process for claimants, increasing the number of weekly work search activities from 1 to 3. This change will go into effect July 2026.
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